Intel’s 14nm “Fab 42” Plant Stays Closed, Rumored To Be Dedicated To 10nm Later On

Intel reportedly announced that its Fab 42 plant has been halted and will not open up anytime soon. This is the same plant, based in Arizona, which Intel was going to use in order to produce the 14nm chips. And no, Intel will not scrap the 14nm chips because of this.

The reason why Fab 42 has delayed its opening is, according to Intel, that their plants are currently working at 80% capacity, and therefore a new manufacturing plant does not make any sense at the moment. Intel, as other manufacturers, “live” by providing the demand of its products on the market. Having only a 80% productivity load is more than enough for the moment, and investing in a new plant will just be a waste of money.

As for the 14nm chip manufacturing, it will be made in other Intel plants. Intel also hints that the Fab 42 plant will be dedicated to manufacturing the 10nm chips, however the Fab 42 plant opening date is still not known. Also, besides Intel’s economical point of view about Fab 42, it is said that they are getting a lot of intense competition in the ARM market at this point, therefore taking any risks is currently not an option for them.